This study, aims to examine empirically, the best possible relationship among variable of organizational transformation, competitive advantage and performance. The research object is te state owned enterprise (SEO's) privatization in Indonesia. The analysis unit related to the research method, involves a company while the respondents occupied by the primary manager. The method used for testing the empirical model is the Structural Equation Model on Partial Least Square. The strategic finding, take fron this research, implies in ways of achieving performances. This research aimed to give theory implication on concept Resources based View will be meaningfull to create competitive advantage. Besides, the result gives managerial implication that to improve performance need increasing organizational transformation t increas competitive advantage. Creating competitive advantage can archive through direct role of organizational transformation. Related to the government policy, the government should attention resources in enterprises to become competitiveness as mediating for successful transformation organizational to increase performance. The feature research should used "longitudinal" component to play important role on supporting this study.